Tennessee’s housing market is cooling
The Nashville MSA saw a 30.4% increase in home prices from last year
According to data gathered by the Business and Economic Research Center at Middle Tennessee State University Tennessee’s housing market shows clear signs of cooling.
Data for the second quarter of the year was published in BERC’s “Housing Tennessee,” a statewide report.
“A sign of uneasiness emerged in the corners of the housing market as reflected in significant drops in housing permit activities in Tennessee,” said report author Murat Arik, director of the BERC at MTSU.
Over the past two years, when the Federal Reserve lowered interest rates, Tennessee home buying skyrocketed. Builders couldn’t keep up with demand and the inventory of existing homes was extremely low. Houses sold quickly and offers were often significantly over the listing price.
“I call it the 2020 covid interest discount,” said Jason Galaz with Find a Home in Tennessee. “But that’s over.”
The Federal Reserve raised rates this year and current mortgage interest rates are hovering around 6% to 7% and Galaz doesn’t expect to see that lower until spring 2023.
Higher rates have caused a downturn in the market and one of the most notable signs is the number of times houses is sitting on the market, explained Galaz, who is launching Tennessee’s first all-Spanish home search in the coming months. The Zillow-style site will target the growing population of Spanish-speaking homebuyers.
Source: Daily News Journal